Abstract
The purpose of this thesis is to understand the concept of brand image in the context of the best tournament of professional football in Denmark - Alka Superliga. Kotler (2001) states that brand image can be defined as: “The set of beliefs, ideas and impressions that a person holds regarding an object” (p. 273), and this view have led to an examination of the image of the Alka Superliga.
However, during our research in the theoretical framework of a brand image, we learned that the statement by Kotler (2001) needed to be unfolded further to incorporate a two-sided aspect of the concept. We argue that one side of the notion is to reveal the desired image of the brand through Divisionsforeningen’ set of beliefs, ideas and impressions expressed in their positioning and the associations they want to connect with the brand. Simultaneously, we discover the brand from the perspective of the perceived set of beliefs, ideas and impression reflected in the associations held by the consumers.
This emphasize that the definition of the brand image of Alka Superliga is to be interpreted from a perspective related to the Divisionsforeningen and a perspective related to the consumers. In order for define the brand image of Alka Superliga we divide the thesis in two parts: One part focusing on the perspective of Divisionsforeningen conceptualized as Desired Brand Image and another focusing on the perspective of consumers conceptualized as Perceived Brand Image. Dividing the thesis in terms of the desired and the perceived brand image implied that the empiricism of the thesis should treat both perspectives emphasizing that different qualitative and quantitative empirical collection techniques is applied. Through our study of the brand image of Alka Superliga we acknowledge that Divisionsforeningen and the consumers differ in terms of their brand image emphasizing that in order to understand the brand image of Alka Superliga we have to consider the brand image from different perspectives. However, as a final remark our research led to the appreciation of that the concept of brand image cannot be conceptualized into two distinct beliefs as the image of the brand is a cognitive and context related construction in the mind of the individuals emphasizing that the interpretation of brand image is unique. Thus, it is impossible to derive one complete truth about a brand’s image.
Table of Content
Entering the pitch 5
Problem Definition 5
Research question 6
Delimitation 6
Methodology, method and empiricism 8
Methods 9
Empiricism 10
Philosophy of Science 12
Brand Image 14
Desired and Perceived Brand Image 15
Alka Superliga 15
About 15
History and league structure 16
Desired image 18
Market theory 18
Theoretical foundation of Brand Positioning 19
Segmentation 20
Targeting 21
Positioning 23
The desired image of Alka Superliga 25
Defining the market for Alka Superliga 25
Exploring external forces 27
How are the forces forming the market? 33
Investigating STP 36
What do we know about the consumers in the market? 36
Who to target? 42
Is the target group attractive? 42
The capability of Danishness 44
Scandinavian Premium 47
Where to be positioned? 51
Understanding positioning? 55
Perceived Image 62
Theoretical foundation of brand knowledge 62
Brand Awareness 62
Association Network Memory Model 63
Mapping associations from memory 65
A distinguished attribute? 65
Experiencing the brand 67
The first thought 69
A prior experience 69
How are associations creating value? 72
Scandinavian Premium? 74
Access or Quality 75
Theoretical foundation of brand identities 77
Brand Elements 77
The Alka Superliga name? 80
Breakdown of the name 81
Becoming the Alka Superliga 85
What to favour? 88
Visualisation of the brand 90
Where to be visualised? 94
Something familiar? 96
Understanding associations? 98
What do we know and what do we really know? 102
About positioning? 102
About associations? 104
About name and logo? 106
Investigating the brand image of Alka Superliga and explaining its significance for consumers 108
Table of figures 111
Appendix 113
Bibliography 117
Pre-match
This thesis is the product based upon our learnings during our time at Copenhagen Business School and especially our learnings during the process of the master thesis. Within the last five months, we have researched the literature of already known areas and reviewed new ones, in order to expand our knowledge on the subject. This thesis is an artefact where we explicitly have tried to combine our prior understanding with our newly obtained knowledge, to present a new insight for the marketing concept of brand image in a delineated perspective of the best football tournament in Denmark – Alka Superliga. The purpose of this thesis has not been to demean the theoretical foundation of the concept on brand image, but rather to understand, challenge and reflect upon the concept in the context of Alka Superliga. We hope that you will enjoy reading our thesis and hope that our contribution to the field will make you reflect upon the notion of brand image in the context of Alka Superliga.
Jeppe Juhl Anthonsen and Nikolaj Mogensen
Entering the pitch
The world of football has long been recognized as a sector of great economic-, social- and management significance, and for its commercialised impact expanding its influence every year.
Economic numbers estimate that the European football market is to generate an expected revenue of €25 billion in 2016/17, and figures for the financial performance of the English Premier League shows that the clubs’ commercial revenue was €4.4 billion (Deloitte, 2016). Furthermore, the Arsenal FC, has an £30 million-a-year kit-deal with Puma (The Brand Finance Group, 2016), Manchester United experiences an average of 75.206 attendances at the Old Trafford (Harmundal, 2014), while Cristiano Ronaldo has a global fan-base of +101 million followers on Instagram (Instagram, n.d.). The world of football is massive and so are the various fields of study. We have personally been fans of football for many years and are daily stimulated by numerous brand-related activities from different sides. During our youth, we have not paid much attention to the mechanism behind these brand-related activities, but felt the unconscious triggers that have affected our perceptions and beliefs. Today, we know that the world of football has moved itself from its core benefit of the match to enter the world of marketing. Now, we have a better understanding of the mechanism in branding, and studied its effect across different markets to gain knowledge about the interrelated influence. With the definition of brand image by Kotler (2001): “The set of beliefs, ideas and impressions that a person holds regarding an object” (p. 273) we are to study its significance in a modern context of Danish football and Alka Superliga.
Problem Definition
According to Malik, Naeem and Munawar (2012) the power of the brand can be defined as a function of the “components” surrounding the brand and equalling the desired image that companies have in relation to their brand. Similarly, power of the brand is defined in its perceived image that consumers hold for these components (Malik et al., 2012). The power of the brand is to turn the product into a brand with these components shaped by the notion of brand image as more than the sum of its parts. The definition by Kotler (2001) and the interpretation by Malik et al. (2012) make us wonder how different aspects of branding (desired image and perceived image) influence
the overall brand image of Alka Superliga. Are the aspects individually contributing to the formation of the brand image or is the brand image a correlation between different aspects of branding?
Research question
The thesis is based on the foundation of understanding the brand image of Alka Superliga emphasizing that the research question is as follows:
How are we to investigate the brand image of Alka Superliga, and explain its significance for consumers?
Recognizing questions
In order to answer the research questions, additional recognizing questions about desired image and perceived image needs to be asked and answered, which is leading to the formulation of the following recognizing questions:
• What image does Divisionsforeningen aim to identify the Alka Superliga brand with?
• What image of Alka Superliga does consumers have, reflected in their associations for the brand?
Delimitation
Throughout the thesis different delimitations have been made as delimitations limits the scope and define the boundaries of the research (Simon, 2013).
The first delimitation of the thesis is the primary focus of the thesis will be from a Danish point of view. The reason for this delimitation is that the brand of Alka Superliga is considered to be primarily relevant in Denmark and for Danish consumers. Thus, the focus in a Danish context is to exclude an external perspectives from other countries and to emphasize its importance in the Danish market.
Consumers cognitively create a perceived image of the brand on the premise of these components (Malik, et al., 2012). The statements emphasize that multiple components in the literature of branding are forming the brand image. However, due to limitations, the thesis will primarily focus on creating an understanding of the desired brand image of Alka Superliga on the premise of brand positioning and the perceived image of consumers on the premise of brand associations in terms of Alka Superliga. The argumentation for the choice of these components is that the “components”
individually enlighten interesting aspects of branding and that the components individually as well as collectively contribute to the formation of brand image.
In terms of the perceived image by consumers the delimitations are made on the premise of culture.
The cultural perspective in terms of brand management is implying that the consumption of consumers, relates to their cultural context (Thompson, Rindfleisch & Arsel, 2006). The application of culture in the thesis can be advantageous in order for generating a further understanding of how the perceived image of consumers in relation to Alka Superliga is created. However, the complexity in terms of a research based on culture is deemed as being too high emphasizing that this field will not be further elaborated.
Another delimitation in terms of understanding the perceived image of consumers is the delimitation regarding neuromarketing. According to Fortunato, Giraldi and Oliveira (2014) neuromarketing is to provide the tools for unveiling cognitive properties in the minds of consumers and make the behavioral patterns of consumers predictable. This can be useful in terms of understanding the perceived image of consumers from a more cognitive perspective. However, similar to the field of culture is the complexity of neuromarketing in contrast to the purpose of the thesis deemed too high emphasizing that field is not included.
The final delimitation is a restricting to focus on brand communities. According to Muniz and O´Guinn (2001) a brand community is created when a group of consumers shares a homogenous commitment and emotional attachment to a specific product or brand. One can argue that football in general have created one global cohesive brand community across borders, as consumers all over the world are emotionally attached to the sport. But also because of the multiple communities related to different clubs, that exist both national and international. These brand communities are
also present in Denmark. A further understanding of the brand community foundation could be beneficial for the research of the perceived and the desired brand image, and in relation to Alka Superliga note the influence from Danish club fanbases.
Methodology, method and empiricism
The starting point of the research, is the approach of problematization theorized by Alvesson and Sandberg (2011). According to Alvesson and Sandberg (2011) the fundamental assumptions in a research can be challenged in different ways. One of the ways to challenge these assumptions is the in-house assumption which is described as: “assumptions that exist within a particular school of thought in the sense that they are shared and accepted as unproblematic by its advocates”
(Alvesson & Sandberg, 2011, p. 254).
Based on the premise of the research question and recognizing questions formulated above, it is fair to argue that problematization will use the in-house assumption as the thesis challenge and reflect upon the existing understanding of brand image in the context of Alka Superliga and potentially generate new interesting perspectives. Methodologically we endeavour our result being based on as many “sources” as possible exemplified with the application of interviews, surveys, theories etc. in order to strengthen the validity and to compensate for our own subjectivity described in the section of “Philosophy of Science”. Additionally, the application of multiple
“sources” help us in terms of answering the problem statement defined in the research question.
Methods
The research question and the recognizing questions emphasize that the design of the thesis is designed as a recurrent circle. Illustratively the design look as follows:
Figure 1: Method of design
The first part of the research is a literature review of brand image to understand the theoretical foundation of it and to generate knowledge applicable in the context of Alka Superliga. The literature overview of the theoretical foundation of brand image implied by the statement of Kotler (2001) that the understanding of brand image is two-fold, emphasizing that brand image is to be interpreted from different perspectives. One perspective of Divisionsforeningen’ set of beliefs, ideas and impressions expressed in their positioning and the associations they want to link with the brand conceptualized as desired image, and another perspective of consumers’ set of beliefs, ideas and impressions reflected in the associations held by the consumer conceptualized as perceived image.
The division imply that the second part of the research is split in order to understand brand image from both perspectives emphasizing that the perspectives will be individually described theoretically, analyzed on the premise of Alka Superliga and discussed in order to identify correlations, misfits and other interesting factors. The second part of the recurrent circle lead to the
Brand Image
Brand positioning - a literature
review
Positioning in a context of Alka
Superliga
Discussing the brand positioning Brand knowledge
- a literature reveiw Knowledge in a
context of Alka Superliga
Discussing the brand knowledge
final part where we combine our obtained knowledge from the research of the desired image and perceived image in order to investigate the brand image of Alka Superliga and explain its significance for consumers.
Empiricism
The thesis will be based on different empirical studies emphasizing that the empiricism was triangulated as the thesis was approached from different angles. The first angle of empiricism applied in the thesis is the angle of existing literature. By examining existing literature within the fields of brand image, brand positioning and brand associations a baseline was created for the further study. The existing literature helped in terms of generating a basic understanding of the data analysed and evaluated. Additionally, an understanding of the existing literature within the fields was important for the potential generation of new knowledge, as new knowledge emphasized that the theory is challenged and reflected upon.
The second angle in terms of empiricism is the angle of qualitative interviews. To examine the stated research problem in the introduction of the thesis, the practice of qualitative interviews was conducted in coherence with the theory on qualitative research by Andersen (2008), King and Horrocks (2010), Justesen and Mik-Meyer (2010), and Bampton and Cowton (2002). For the thesis, we interviewed Jesper Duelund Jensen who is Head of Marketing for Divisionsforeningen in Denmark and Claus Bretton-Meyer who is the CEO of the Danish Football Association (DBU). The interview with Jesper Duelund Jensen was designed in coherence with the guidance of King and Horrocks (2010) emphasizing that the physical settings chosen for the interview was quiet and private to create the best atmosphere. Jesper Duelund Jensen was recruited by email, and received the questions in advance in order for being prepared for the interview. Based on the theory from King and Horrocks (2010), the interview was recorded with an instrument suitable for an interview and solely based on mutual content with Jesper Duelund Jensen. The interview was conducted as a semi-structured interview emphasizing that a list of questions was prepared in advance, and that the questions was used as a guideline if Jesper Duelund Jensen deviated from the intended research.
These guideline questions were supported by additional questions during the interviews. By conducting the interviews as semi-structured interviews, room was made for that the Jesper Duelund Jensen freely could answer the questions within the area of study (Andersen, 2008).
In terms of the interview with Claus Bretton-Meyer, he did not have the time to participate in a face- to-face interview emphasizing that the interview with him was conducted as an e-mail interview.
Like Jesper Duelund Jensen, Claus Bretton-Meyer was recruited by email and during the recruitment process of Claus Bretton-Meyer we mutually agreed a time frame for the e-mail interview. The advantages of the e-mail interview as methodology was that Claus Bretton-Meyer could answer the questions whenever he wanted only limited by the agreed time frame. Additionally, the e-mail interview as a methodology made room for Claus Bretton-Meyer to spend time thinking about the questions and the answers emphasizing the interview became more comprehensive (Bampton &
Cowton, 2002). The argumentation for applying the qualitative interviews as a method in the thesis was based on that the qualitative interview was a profound methodology to examine a particular area of study and where the interviewees (if chosen properly) could describe the environment around the area qualitatively (Justesen & Mik-Meyer, 2010). In terms of the empiricism of the thesis it is fair to argue that Jesper Duelund Jensen and Claus Bretton-Meyer have the prerequisites for qualitatively describe the branding and especially the desired branding of Alka Superliga due to their positions as Head of Marketing for Divisionsforeningen and as CEO of the Danish Football Association.
The third angle in terms of empiricism is the angle of surveys. The qualitative interviews conducted were focusing on Alka Superliga from the perspective of Divisionsforeningen and DBU emphasizing that a methodology focusing on the perspective from consumers was needed. Based on this need, a survey was conducted in coherence with the approach of Andersen and Hansen (2009). The application of the survey in terms of the data collection methodology implied that the thesis in addition to the qualitative methodology of the qualitative interviews used a quantitative methodology in order to generate measurable data and to create an understanding of the perceived image of Alka Superliga. The data from the survey enabled the possibility of generalizations due to the number of respondents of the survey. The survey was distributed online, due to the convenience and the easy accessibility for the respondents and us as researchers. Additionally, the distribution of the survey did have different advantages as the cost and time consumption was relatively low with a high degree of geographical coverage (Andersen & Hansen, 2009).
The fourth and final angle is netnography. According to Kozinets (2010) netnography is the empirical study of computer-mediated social interactions. In this thesis, the methodology of netnography was applied to the extent that the social media websites of Facebook and Instagram was observed and analysed to investigate the potential online interaction between Alka Superliga and the consumers, and thereby identify additional parts forming the brand image. The application of netnography implied that it was possible to observe the interaction between Alka Superliga and the consumers without interruptions emphasizing that the observed field was in its natural setting as the observed was not aware of the observation (Kozinets, 2010).
Philosophy of Science
In this section, we will reasonably explain the scientific perspective of the thesis in order to create a relation with the knowledge obtained. The starting point will be a distinction of ontology and epistemology followed by an explanation of the methodology applied in the thesis. Rendering with the definition of Langergaard, Barlebo and Sørensen (2011), ontology is the study on the nature of being. In relation to the thesis is the ontology the assumptions we as researchers examines and evaluates the world with. The ontology of the thesis is deemed as being social constructivism emphasizing that the thesis is founded on the assumption that the world and the communication in the world is a social construction (Langergaard, et al., 2011). In terms of the thesis, the ontology of social constructivism clarify that actions always will be contextual and the premise of that social interaction(s) is required for those actions to exist. This notion emphasizes that the knowledge we as researchers obtain during the research might differentiate from other researchers doing the same research as the knowledge obtained depends on the social context where knowledge is generated. Epistemology is the study of scientific knowledge and is dealing with the cognitive thinking of humans including the limitation in terms of human knowledge and cognition (Langergaard et al., 2011). In terms of the thesis does the paradigm of epistemology involve a hermeneutic approach implying that the creation of knowledge is a circular process. In this process, the understanding of the researcher(s) is partly explicit and implicit lead to a recognition of that truth is mutable (Langergaard et al., 2011). The circular process is explained by the creation of knowledge as we, as researchers, continuously change our pre-understanding and our understanding of the problem area. This notion is primarily based on the premise that our knowledge and understanding in terms of the field of research is constantly changing during the
research and the fact that we, as researchers, continuously generate new knowledge. In methodological literature, it is known as; “The dual competence of the reflexive practitioner“
(Barlebo, 2006). However even though we constantly generate new knowledge during the research process, we still have a preconception in terms of the area of research that cannot be completely dispensed and a preconception fundamental for the overall understanding of the field of research.
Based on the social constructivism and the hermeneutic approach it can be argued that there will be a difference in terms of how individuals interprets and understand the field of research emphasizing our focus on limiting the influence of our preconception to limit the subjectivity of the thesis. Additionally, we will continuously reflect upon our application of specific methodological techniques and our own interpretations in order to further reduce the subjectivity of the thesis. However, even though we focus on increasing the objectivity of the thesis one could argue that the paradigms in terms of ontology and epistemology emphasize that the result obtained in the thesis potentially would not be the same for other researches. Based on this it can be argued that the knowledge generated as a function of the thesis not can be deemed as conclusive but rather as alternative perspective as the understanding of the world by individuals not is the actual reality but a reality created cognitively in the minds of the individuals as a social construction.
Brand Image
To define the brand image of Alka Superliga, we need to determine the conceptual framework derived from literature, for which the idea of brand image is understood. Since the introduction of brand image in 1955 by Gardner and Levy, the terminology has been researched, decomposed and changed numerous times (Malik et al., 2012). Some of the most interesting researches about brand image is the researches by Aaker (1991), Keller (1993) and Kotler (2001). These authors operationalized and conceptualized the terminology of brand image to be organized by the association network memory model (John, Loken, Kim & Monga, 2006), organizing the brand’s image to isolate its distinctiveness and determine its offered value for the consumer. Hence, the brand image becomes consumer-based by the associations and attributes formed in each individual mind. According to Kotler (2001), this consciously examination of linkages and nodes in the mind of the consumers regarding the formation of a brand image toward a given brand can be defined as;
“The set of beliefs, ideas and impressions that a person holds regarding an object” (p. 273)
Zhang (2015) review brand image as “consumer’s general perception and feeling about a brand”
(p.58), while Park, Jaworski and MacInnis (1986) stress how brand image is: “the understanding consumers derive from the total set of brand-related activities engaged by the firm” (p. 135). Brand image has various definitions throughout the literature and has conceptualized it into multiple dimensions rendering different perspectives of its definition (Dobni & Zinkhan, 1990; Malik et al., 2012; Lee, James & Kim, 2014; Zhang, 2015). Lee et al. (2014) argues, the concept of brand image has been widely defined by researchers why they propose a reviewed description of the phrase to
“the sum of a customer’s perception about a brand generated by the interaction of the cognitive, affective, and evaluative processes in a customer’s mind” (p. 1).
Desired and Perceived Brand Image
According to Malik et al. (2012) is the terminology of brand image perceived differently by consumers and companies. Consumers interprets or views the brand and consciously creates an image of the brand in their mind known as perceived brand image. Companies on the other hand want to position their brand so the brand matches the perceived image of the consumers. Hence, they produce a desired brand image to match this presumed brand image of the consumer. This is known as desired brand image (Malik, et al., 2012). Keller (1993; 2013) states that brand image includes the associations that a brand holds for a consumer and Malik et al. (2012) disputes that the positioning strategy chosen by the firm is an important aspect of creating a brand image, as the desired target audience for one’s product is to receive a focused brand message with the aim of placing the product in those customer’s minds. Thereby, the components surrounding the product are all to “ensure the desired positioning” (Malik et al., 2012, p. 13070) and “positions its brand in the right way and in a desired direction to influence what customers believe about a brand” (Lee et al., 2014, p. 3). With this knowledge, we can go into depth with the formulating the definition of brand image in terms of Alka Superliga from our perspective.
Alka Superliga
Before analysing and defining the overall brand image of Alka Superliga on the premise of the desired and perceived image a definition of the “nature” of Alka Superliga is needed.
The name, Alka Superliga, is based upon the current sponsor, why we in the following will refer to it as Superliga (with no sponsor), as the naming sponsor has changed several times during the 26 years of origin.
About
The Superliga is administrated by Divisionsforeningen, which is an association created by the clubs from the three best tiers in Denmark (Divisionsforeningen, 2017). The administration of the Superliga includes some of the following responsibilities: scheduling of matches, branding,
development, appointment of judges and general security (Interview 1, 2017). However, Divisionsforeningen is only in charge of the league nationally. Bretton-Meyer (Interview 2, 2017) explains how DBU oversees the communication with the International Federation of Association Football (FIFA) and the Union of European Football Associations (UEFA). This communication includes that DBU refer to FIFA and UEFA about the football played in Denmark for the football to be played according to International standards (Interview 2, 2017). Based on the above, the administrational structure of the Superliga is to be outlined as (figure 2.1).
Figure 2: Superliga
History and league structure
Superliga as we know it today was founded back in 1991 as the best football clubs in Denmark wanted a more sharpened league consisting of only the best clubs. The creation of a top league emphasized that the professional clubs were capable of implementing their own ideas and ambitions into the league, which helped the smaller clubs - known as amateur clubs - to focus on width and local engagement as the amateur clubs played in lower leagues with a lower degree of competitiveness (Divisionsforeningen, n.d.).
Since the foundation of the Superliga, the league has had some different league structures. From the season of 1991/1992 to the season of 1994/1995 the league was divided in two parts. The first part of the season was played during the autumn and consisted of 10 different clubs who played each other home and away making it 18 matches in total for each club. The second part of the
season was played during the spring and consisted of the 8 best ranked clubs from the first part of the season (autumn) who was promoted to the playoffs. In the playoffs, the 8 teams played each other again home and away making it 14 matches in total for each club. The best ranked club after the playoffs was declared the winner.
Before the season of 1995/1996 the league structure of Superliga was changed to a league structure where the league was played as one part during both autumn and spring. This new structure emphasized that Superliga was expanded with two additional members making the league consisting of 12 clubs. The 12 clubs played each other home and away and again home or away depending on the results from last season making it 33 matches in total for each club during the season. The winner of the league was the best ranked club after 33 matches ( (DBU, n.d.)
In the season of 2016/2017 the structure of the league was changed once again and is the structure of the league today. Similar to the league structure from the season 1991/1992 to 1994/1995 is the league now again divided in two parts. One part played during the autumn and one part played during the spring. In the first part of the season 14 different clubs play each other home and away making it 26 matches in total for each club. The second part of the season is divided in two leagues.
One league called the “Championship Playoffs” consist of the 6 best ranked clubs from the first part of the season. The 6 clubs play each other home and away making it 10 matches in total for each club. The best ranked club after the 10 matches in the “Championship Playoffs” is declared the winner of the league. The other league is called the “Relegation Playoffs”. This league consists of the 8 lowest ranked clubs from the first part of the season and these 8 clubs are divided in two groups with four team in each group. During the group stage, the clubs play each other making it 6 matches in total for each of the clubs. The two lowest ranked clubs from each group after the 6 matches move on to the next stage called the “Relegation Knockout”. In the first phase of the
“Relegation Knockout” is number 3 from group 1 facing number 4 from group 2 and vice versa. The winners of the first “Relegation Knockout” phase face each other in one match deciding who will stay in the Superliga (winner of the match) and who will face number 3 from 1. division (second tier in Denmark) in a match determining who will play in the Superliga and who will play in the 1. division next season. The losers of the first phase of the “Relegation Knockout” face each other in a match determining who will relegate directly (loser of the match) and who will face number 2 from 1.
division in a match determining who will play in the Superliga and who will play in the 1. division next season (Superliga, n.d.)
According to Divisionsforeningen (2016) is the new structure of the league emphasizing the league becoming more exciting for the consumers and the level of football in Alka Superliga become significantly better. Furthermore, the purpose of the structure is to strengthen the competitiveness of the Danish clubs in an international context as the structure implied that more equal matches will be played (Superliga, n.d.).
Desired image
Alka Superliga is to position their desired brand image so the brand matches the perceived image of their customers, the strategy of positioning the brand aims to locate the brand in a distinctive part of consumers’ mind. Therefore, we will in the following consider the positioning strategy conducted by Divisionsforeningen to indicate a representative design for the desired image. We are to examine the target market and consumers within to understand the position, and we do so in coherence with our method for the structural design. At first, the literature review is to provide a conceptualized insight to the view on positioning and simplify the framework to which the formation of the desired brand image of Alka Superliga is to be researched upon.
Market theory
Before describing the theoretical foundation of brand positioning a theoretic clarification in terms of the market will be defined. As Kotler and Armstrong (2012) states, the first step in a marketing process is to understand the marketplace the brand operates in and thereby the consumers of that market. On the premise of this, the definition of the market will be based on the theory of Abell (1980), who defines a market on the premise of three dimensions:
• Served Customer Groups → Who are the customers?
• Served Customer Functions → What are the needs and wants of the customers?
• Technologies Utilized → How are the needs and wants to be satisfied?
(Abell, 1980) Defining the market is important in terms of evaluating the positioning of the brand as the brand should consider their markets as customer satisfying processes where the brand should deliver customer perceived value (Kotler, Keller, Brady, Goodman and Hansen, 2012). In addition to the market definition by Abell (1980), the forces in the market needs to be comprehended to generate further knowledge of the market place and the consumers in the market. According to Porter (1979), the following five forces are forming a market: Entrants, Suppliers, Competitors, Buyers and Substitutes. An analysis of the forces helps determining the fundamental strengths and weakness of a brand in a given industry, clarifying the areas where strategic change might lead to a higher payoff and animates the current positioning of the brand in relief to the competition in the market (Porter, 1979). Additionally, the previously described forces clarify the long-run attractiveness of the market, as the forces combined lead to an overall evaluation of the long-run attractiveness of the market (Kotler, et al., 2012).
Theoretical foundation of Brand Positioning
As the theoretical foundation in terms of the market have been conducted, the theoretical foundation in terms of the brand positioning can be described.
The starting point for the theoretical framework will be the STP model - Segmentation, Targeting and Positioning - as the model identifies the links between the overall market (defined in the market definition and Porter’s Five Forces) and how a brand chooses to position in a market (Kotler & Keller, 2006). The STP model will be used as a theoretical base in order to analyse the brand positioning of Alka Superliga and thereby the desired image as the model will contribute to an understanding of how Alka Superliga have prioritized propositions, developed and delivered relevant and personal marketing messages in terms of their target audiences founded in the segmentation (Hanlon, 2016).
Segmentation
The STP model emphasize that the first part of the model is segmentation, why a theoretical foundation of segmentation is created. In marketing and brand management a segment is defined as a “market” segment consistent of a cluster of consumers who share similar needs and wants and who differentiates from other consumers in the market (Johnson, Whittington, Scholes, Angwin and Regnér, 2014). Market segmentation is of great importance for companies and brands as they cannot connect with every consumer in large, diverse and broad markets. By applying market segmentation as a strategic process, marketers are capable of identifying the market segments that the brand can serve efficiently and effectively (Kotler et al., 2012).
In branding and marketing literature there is distinctive ways to segment a market. Some researchers define market segments by characteristics like: geography, demography and psychography, while other researchers define market segments by behavioural considerations. In this thesis, we will focus on defining market segment by the geography, demography and psychography as these characteristics are the best way to define market segments descriptively (Kotler et. al., 2012).
Dividing the market into different geographical units: nations, regions, cities etc., is known as geographic segmentation (Kotler et. al., 2012). The advantages of geographic segmentation is that the approach helps marketers identify cultural and socio-economic differences within a given geographical unit. The approach has some limitations as it assumes the consumers within a geographic unit have similar needs and wants, making them homogeneous. Additionally, the approach focuses on what is known about the consumers in terms of their geographical presence, but does not focus on the cognitive aspects of consumers. The limitations of the approach, imply that the approach cannot be applied as the only segmentation base, and that it should be used in conjunction with additional segmentations bases (Fripp, 2015).
In order to make the market segmentation more specific the segmentation base of demographic is applied. In demographic segmentation, the market is divided into groups on the premise of basic variables: age, family life cycle, gender, occupation, education, religion, social class, etc. (Kotler et.
al., 2012). The advantages of demographic segmentation are that the approach is easy to apply as
statistics and basic variables defining the demographic segmentation are easily and cheaply collected. However, like the geographic approach of segmentation the demographic approach is limited, as it also assumes that consumers within a demographic group are homogenous.
Furthermore, the approach focuses the basic knowledge of the consumers, but not the cognitive aspect of consumers implying the approach should be used in conjunction with a segmentation base that provides a better insight to the cognitive thinking of consumers (Fripp, 2015).
In order to include the cognitive properties of consumers in the market the psychographic segmentation approach is applied. This approach implies that the consumers in the market are divided into different groups on the premise of their personal and psychological traits. Each of these groups have their own psychological profile, which is determined by the AIO factors: Activities, interests and opinions (Kotler et. al., 2012). Similar to the geographic and demographic segmentation approaches, the psychographic segmentation approach has certain advantages and limitations. One of the main advantages of the psychographic segmentation approach is that it provides important insights in terms of understanding the cognitive properties of consumers in the market improving the degree of specification in term of the segmentation process. The primary limitation of the psychographic segmentation approach is that it requires detailed information and data about the consumers in the market, which cannot be easily accessed (Fripp, 2015).
Targeting
Once the potential market segments opportunities have been identified by the brand, it should be decided how many and which segments the brand should target. The decision of which segments to target is a process of evaluation where the brand looks at three factors: overall attractiveness of the segments, the valuable resources/capabilities of the brand and the objective of the brand (Kotler et al., 2012).
According to Iannuzzi (2014), a market segment is considered attractive when the segment is as following:
• Measurable → The characteristics, the size and the purchasing power of the segment can be measured
• Substantial → The segment should be profitable, large and worth pursuing for the brand/company
• Accessible → The segment should be easy to serve and reach
• Differentiable → The segment should be homogeneous internally, but heterogeneous externally in order for reduce overlapping
• Actionable → The segment can be effectively served and attracted by marketing programs.
(Iannuzzi, 2014)
Another important factor that needs to be considered when deciding which segments to target is the factor concerning the resources and the capabilities of the brand. Similar to the factor of the objectives of the brand, the factor of resources and capabilities is considered relevant, as resources and capabilities likewise should be compatible with the attractive segments and the objectives of the brand (Kotler et al., 2012). The valuable resources and capabilities of a given brand can be identified in different ways. In this thesis, the resources and capabilities are determined by the V.R.I.O framework:
• Value → Is the brand valuable to consumers
• Rarity → Can the resources and capabilities only be acquired a limited number of competitors
• Inimitability → Is it costly for competitors to imitate, substitute or obtain the resources and capabilities)
• Organizational support → Is the brand organized to capture the value from the resources and capabilities
(Barney, 1995) The framework is a profound tool to understand the sources of competitive advantage a given brand might have as a function of their resources and capabilities (Barney, 1995).
The final factor relevant for brands when evaluating and deciding which segments to target is related to the objectives of the brand. This factor is considered relevant in the evaluation process,
as the objectives of a brand should be compatible with an attractive segment and the capabilities and resources available to make the targeting effective. If the factors of the overall attractiveness and the objectives are not compatible, the targeting might be wrong and lead to invaluable positioning of the brand (Kotler et al., 2012). Different brands have different objectives. However, in a theoretical term, the objectives of a brand can be determined by the S.M.A.R.T criteria:
• Specific → Specific area of improvement
• Measurable → Indication of progress
• Agreed upon → Who is in charge?
• Realistic → Can the objective realistically be achieved?
• Time-related → When can the objective be achieved?
(Doran, 1981)
The framework is used as a guiding system for determining objectives for a brand (Doran, 1981).
The objectives of the brand can be determined by other frameworks, but the advantages of the S.M.A.R.T framework is that objectives are easily monitored, making it easier to identify potential missing targets and the framework makes organizational change and adaption easier (Walters, 2012).
Positioning
When a brand has identified their target audiences, it should decide how it should be positioned.
According to Bauer and Hammerschmidt (2005), the purpose of positioning is to design the brands image and market offering to occupy a place in the mind of the target audiences in order to maximize the potential benefit of the brand. This is done by a successful creation of customer- focused value propositions in the mind of consumers convincing the targeted consumer that he should purchase the brand (Kotler et al., 2012). The literature review describes the theoretical foundation of the framework regarding the market definition and the forces forming the market.
These theoretical frameworks are relevant in terms of the positioning of brands as the theory of positioning imply that a comparison between the “players” in the market is relevant. The comparison contributes in terms of identifying the Point of Parity (PoP), Point of Differences (PoD)
and Differences by product (DbP) as these factors are essential for the determination of the positioning for the brand (Kotler et al., 2012).
Points of Parity
PoP are benefits and associations that not are unique to a single brand but may be shared by many different brands in the industry (Kotler & Keller, 2016). The common associations and benefits shared by multiple competitors can be described in three different forms:
• Category points of parity → Essential benefits and associations of legitimate and credible brands within a given product category
• Correlational points of parity → Potential negative associations as a function of the positive associations of a brand
• Competitive points of parity → Associations created in order to overcome weaknesses of a given brand in the light of PoDs created by competitors in the industry
(Kotler & Keller, 2016) Points of difference
PoD is used to describe the benefits and attributes about a brand that consumers positively evaluate, believe they to same extent cannot find a competing brand and a brand that the consumer strongly associate (Kotler & Keller, 2016). In general, strong brands have multiple PoDs and potential PoDs can be determined by three different criteria:
• Desirability → The brands associations are personal and unique for consumers
• Differentiability → The brand associations are superior and distinctive to competitors
• Deliverability → The brand should have the resources and the commitment to maintain and create associations in the minds of consumers
(Kotler & Keller, 2016).
Difference by Product
Successful product differentiation often leads to competitive advantage, which competing brands cannot copy or match (Kotler & Keller, 2016). According to Pepall, Richards and Norman (2008) there are three different types of product differentiation:
• Simple → Variety of characteristics like quality, price, benefit, etc.
• Horizontal → Single characteristic but not focusing on quality
• Vertical → Single characteristic based on quality
(Pepall et al., 2008)
The desired image of Alka Superliga
The second part of the section is an analysis of Alka Superliga based on the premise of the theory described in the literature review above to conceptualize the brand positioning of Alka Superliga and thereby from our point of view the desired image. The data for the analysis of the desired image of Alka Superliga is generated through empirical studies including interviews and surveys. The purpose of the analysis and evaluation of Alka Superliga is that the part should contribute with an understanding of how the theories are applied in the practical reality and how each of the components contribute to the collateral brand Positioning of Alka Superliga.
Defining the market for Alka Superliga
Before conducting the study of Divisionsforeningen efforts to segment, target and position the brand of Alka Superliga within the market, the market is to be defined. According to Bretton-Meyer, Alka Superliga is primarily relevant for consumer in Denmark, as Alka Superliga is a Danish league embracing the values and moral obligations of Denmark (Interview 2, 2017). Based on this perception, the baseline for the market definition will be the Danish market for professional football.
According to Christensen (2014), the served customer groups of professional football in Denmark are hard to define as all classes of the society, independent of age, have a great or low-key interest in professional football. The undefinable served customer group emphasize that potentially every citizen in Denmark can be considered as being a part of the served customer group implying that the potential served customer group for professional football in Denmark equals 5.756.170 individuals (Statistikbanken, 2017). However, an assumption has been made in order to reduce the primary served customer groups for professional football in Denmark. The assumption is based on the notion that the primary served customer groups are the ones who actively plays football themselves both on an elite level and an amateur level. The table in figure 3.1 shows the number of active members playing football in Denmark, in 2016.
Figure 3.1: Active members 2016
Based on this table and the assumptions, is it argued that the primary served customer group for professional football in Denmark are considered to be the 331.693 men and women who were actively playing football in Denmark anno 2016.
According to Duelund Jensen (Interview 1, 2017) professional football in Denmark has become a mean of family friendly entertainment. Additionally, Christensen (2014) stats that professional football in Denmark creates excitement, feelings and relationships between people emphasizing that professional football can be argued to serve a consumer function in terms of emotional satisfaction and social interaction among individuals.
The served consumer groups of the professional football in Denmark is served by two distinctive utilized technologies. The first utilized technology is the technology of tv-broadcasting. According
to the Annual Report from Divisionsforeningen (2016), the Danish Market in terms of professional football having three premium products: Alka Superliga, the English Premier League and Champions League. The matches of the English Premier League and Champions League are played abroad emphasizing that in order to serve the customer groups the matches need to be broadcasted on tv.
By broadcasting the matches on tv, the served customer groups presumably have their want for family friendly entertainment covered by watching the match and have their need for social interaction covered by presumably watching the matches with friends or family. Furthermore, the matches from the Danish Alka Superliga are broadcasted on tv as well. The second utilized technology used for satisfying the needs and wants of the served customer groups are the Danish football stadiums. At the Danish football stadiums, the served customer groups can spectate the match from Alka Superliga in real life, emphasizing that the served customer groups presumably are being entertained. Additionally, the stadiums are often filled with multiple consumers emphasizing that social interaction is happening.
Exploring external forces
Stated in the literature review, Porter’s Five Forces is a model that is used to understand the market the brand is a part of and determine the state of competition in the market. The analysis of the market of professional football in Denmark will lead to the understanding of the long-run attractiveness of the market and identify the potential threats the forces separately might contain.
According to the Annual Report from Divisionsforeningen (2016), the Danish market for professional football have three premium products: Alka Superliga, the English Premier League and the Champions League. Matches from the three leagues are broadcasted on a weekly basis and often simultaneously on the tv-channels available for the consumers on the Danish market for professional football.
Figure 3.2: Matches on the 9th of April 2017
The screen print in figure 3.2 illustrates how the matches in Alka Superliga and the English Premier League are played simultaneously. The overlap of the matches emphasize that the consumers have to choose between watching Alka Superliga and the English Premier League. The identification of Premier League and Champions League as the main competitors on the Danish market for football is supported by Storm (2015) who states that the clubs in the English Premier League, the Champions League and La Liga (the Spanish league) are dominating in all parts of Europe. The domination of these leagues emphasize that they have the best facilities and the largest budgets making them capable of signing the best players in the world (Storm, 2015). The analysis of the English Premier League as one of the primary competitors in the industry is additionally supported by the survey conducted for this thesis as the survey indicates that 91.2 pct. of respondents perceive the English Premier League as being a league with better quality (Survey, 2017; 3.3).
Within the last few years, a new dominant player in international football have evolved in China.
According to the Chinese president Xi Jinping, the Chinese league should within a relatively small timeframe become an international factor of power in terms of football (Norup, 2016). With governmental support and support from local Chinese businesses, the clubs in the Chinese league have been able to accumulate budgets matching and even in some instances surpass the budgets of the best clubs in Europe. The budgets have made the Chinese clubs attractive for some of the
best players in the world (Norup, 2016). The following table (figure 3.3) is a list of the best-paid football players in the world based on their weekly salary in the world anno 2017.
Figure 3.3: Liste: Du store kineser! Verdens bedst betalte fodboldspillere
The list indicates that number two (Oscar), six (Axel Witsel) and eight (Graziano Pelle) of the best- paid players on a weekly basis plays in the Chinese league supporting the notion that the clubs in the league have some of the biggest budgets in international football. Moreover, the Chinese league have already expanded their broadcasting of the matches from the league resulting in a five-year tv-deal worth 8.3 billion DKK, making the deal more valuable than the tv-deal for the Italian League (Norup, 2016). The matches from the Chinese league are not broadcasted in Denmark yet, making the league an entrant threat and not a competitor. However, assuming this evolution of the Chinese league will continue in the following years, the Chinese league might become one of the main competitors in the Danish market for football within the next few years.
The technologies utilized for professional football in Denmark are tv and the Danish football stadiums. Therefore, it is fair to argue that utilizing technologies equal the supply of the market. The supply from the Danish tv-channels and the stadiums differentiate in terms of different factors emphasizing that the analysis of suppliers is divided into two sections. One section analysing the supply from the Danish tv-channels and another section analysing the supply from the stadiums.
The Danish tv-channels supply the industry of professional football in Denmark with a broadcasting of matches from leagues all over Europe emphasizing that the consumers of the market are capable of watching the matches on tv. Figure 3.4 displays an outlook of matches being broadcasted in Danish television on a typical Saturday in April.
Figure 3.4: Broadcasted football matches on Danish television
The screen print above indicates that Danish tv-channels are broadcasting nine different matches on April 15, 2017. Additionally, the screen image indicates that the Danish tv-channels broadcast from a range of different leagues including the American Major League and the Italian league (Serie A). An interesting notion to make is that many of the listed matches from the screen image above are only available for consumers through the tv-channels as they are played abroad making the tv- channel as supplier have a high degree of power in the market for professional football in Denmark.
The argumentation for this high degree of power is that without the tv-channels the Danish consumers would not be able view the matches played abroad and the matches from Alka Superliga on the couch making the only professional football present in Denmark being the matches played on the stadiums.
Unlike the Danish tv-channels the Danish stadiums are not providing matches to the consumers of the market from leagues all over Europe. The stadiums provide the consumers with real life experiences of professional football played by the Danish clubs. From the survey conducted, we learned that 65.74 pct. of 108 respondents preferred to watch football matches on stadiums.
However, out of the total of 123 observations only 1.63 pct. have attended between 11-20 matches on the stadiums so far in the season 2016-2017 after 28 matches played (Survey, 2017; 2.1; 2.9).
The numbers indicate that people actually prefer to go to stadiums when they want to see a football match, but the 1.63 pct. proves that people do not go there emphasizing that the power of stadiums as suppliers of professional football in Denmark can be deduced as relatively low. The low degree of power is based on consumers not going to the stadiums even though they prefer to and the fact that consumers still have the possibility to watch the matches from Alka Superliga and the European leagues on the tv-channels who are broadcasting the matches.
Duelund Jensen (Interview 1, 2017) states that professional football has become a mean of family friendly entertainment. This claim is supported by the survey conducted for the thesis. The survey shows that 37.35 pct. of the respondents characterize Alka Superliga as being a mean of entertainment and 41.38 pct. of the respondent perceive Alka Superliga as family friendly (Survey, 2017; 3.6; 3.7). As Alka Superliga is considered as mean of family friendly entertainment emphasize that other “forms” of entertainment can be argued as potential substitutes to professional football as these can deliver the same family friendly entertainment as professional football. According to Duelund Jensen (Interview 1, 2017), the following substitutes considered as biggest threat to the market for professional football in Denmark are the Zoos and botanical gardens in Denmark and tv- programs.
The Zoo and botanical gardens in Denmark are considered a relevant substitution threat to professional football in Denmark as these substitutes offer an alternative way for family and people to be entertained. In 2015, the Danish Zoos and botanical gardens had 4.898.103 visitors in total (Statistikbanken, 2017). The number of visitors in the Zoos and botanical gardens make this mean of entertainment interesting in contrast to the market of professional football in Denmark as these visitors potentially could have watched a match of professional football e.g. from Alka Superliga instead either on tv or at the Danish football stadiums. The Zoos and botanical gardens in Denmark
is considered as outdoor means of entertainment emphasizing that the treat as substitutes to professional football in Denmark is considered most relevant when the weather is good.
Similar to the Zoos and botanical gardens in Denmark are tv-programs offering an alternative form of family friendly entertainment. In other to understand how different tv-programs might be a potential threat to professional football in Denmark in terms of substitution we have analysed some of the tv-program offerings on Danish tv. The following screen print (figure 3.5) presents some of the tv-programs transmitted on the biggest tv-channels in Denmark on a Monday evening in April.
Figure 3.5: tv-tid.dk
The yellow marked program in the screen image is a match between Danish clubs Brøndby IF and FC København in the Alka Superliga being broadcasted by the tv-channel 3+ (Viasat). Nevertheless, in terms of family friendly entertainment the screen image is indicating that other tv-channels offer alternatives to the match from Alka Superliga simultaneously with the match being played. The two red-circled programs are broadcasting tv-programs is considered as family friendly entertainment.
DR1 is broadcasting Cirkusrevyen 2016 (a comic family friendly revue) and Kanal5 is broadcasting
‘Milo på Mars’ (a Disney animated movie). The broadcasting of different family friendly entertainment programs simultaneously indicates that viewers can substitute between the programs emphasizing that different tv-programs are considered as potential threats for substitution. An important notion to make is that the example presented above only include a
limited number of tv-channels (10 in total) available for the Danish viewers. In 2015 60.7 pct. of the Danish households had access to +21 channels emphasizing that even more family friendly entertainment tv-programs might have been broadcasted simultaneously with the match from Alka Superliga (Kultur-Ministeriet, 2017).
Argued in the market definition section, an assumption has been made in order to define the served customer group for professional football in Denmark. The assumption was based on that the primary served customer group in terms of professional football in Denmark were the men and women who plays football themselves anno 2016 making the total number of the served customer group 331.693. The assumption from the market definition is used again in order to define the buyers of the market of professional football in Denmark. However, an extra factor of analysis in terms of the buyers have been added in order to analyse and evaluate the bargaining power of the buyers. Based on the analysis of primary competitors and the potential substitutes for Alka Superliga from the previous sections it is fair to argue that the buyers have a high degree of bargain power based on the alternatives available like for example the Zoo or a match from the English Premier League. A further and more substantial analysis of the buyers in the market follows in the sections of segmentation, targeting and positioning.
How are the forces forming the market?
As previously stated, the framework of Porter’s Five Forces is used to understand the long-run attractiveness of the market for professional football in Denmark and to identify the potential threats each of the forces separately contains. The determination of the long-run attractiveness of the market is a combination of these different forces.
The primary competitors in the market (the English Premier League and the Champions League) are big threats to Alka Superliga. The partial conclusion of the competitors being big threats to Alka Superliga is based on the competitors playing matches simultaneously with the matches played in Alka Superliga emphasizing that the consumers likely have to choose which match they want to watch. Additionally, this is supported by the survey as 91.2 pct. of the respondents perceive the English Premier League as being a more quality based football league than Alka Superliga (Survey, 2017; 3.3).
The threat from potential entrants (in this case the Chinese League) is partial concluded to be relatively high based on that the Chinese League have been interesting on an international level in a few years emphasizing that it can be assumed that the Chinese League potentially become a competitor in the market within the next few years. This assumption is supported by the statement of the Chinese President Xi Jinping saying that the Chinese League should become an international power factor in terms of football within a relatively small timeframe. Additionally, multiple football stars like Oscar and Axel Witsel are by now a part of the Chinese League, due to the budgets of the clubs in the league.
From the analysis of the supply from the tv-channels it is fair to argue that tv have a high degree in terms of bargaining power, emphasizing that the supplier is considered as a big threat to the market.
This partial conclusion is primarily based on that from a consumer's’ point of view is it only possible to watch the matches from the foreign leagues on the tv and without tv, the matches from Alka Superliga are only available on the Danish stadiums. The other supplier of the market is the Danish stadiums. Based on the analysis in terms of the stadiums as supplier it can be argued that the stadiums only make up a relative low threat. This notion is primarily based on the survey conducted for the thesis indicating that even though 67 pct. of the consumers in the market prefer watching the matches at the stadiums, only 1.7 pct. of the consumers have attended a stadium between 11- 20 times after 28 matches played in the Alka Superliga. This is further supported by the fact that the supply from tv (which was partial concluded as being a big threat) oppose the supply from stadiums as the consumers can watch the matches from the tv instead of the stadiums.
The threat from the substitutes of Zoo, botanical gardens and tv-programs are partial concluded to be relatively high, based on the fact that professional football has become a mean of family friendly entertainment as stated by Duelund Jensen (Interview 1, 2017). Both the Zoo, botanical gardens and tv-programs are assumed to be a mean of family friendly entertainment emphasizing that they are potential substitutes for professional football in Denmark. Additionally, the partial conclusion is that the Zoo and botanical gardens are a threat to the industry indicated by the number of visitors in the Zoo and botanical gardens anno 2015 as these visitors potentially could have substituted their
